Sequester Cuts Likely to Take Effect March 1

This week, Congressional leaders have given little indication that Congress will prevent or postpone the automatic, across-the-board sequester cuts to federal spending scheduled to occur on March 1, 2013. Under current law, sequestration would cut spending by $85 billion starting on March 1. The Office of Management and Budget (OMB) has announced that defense spending will face a 7.3 percent reduction in funding while non-defense programs will be cut by 5.1 percent. Congress could include changes to the sequester cuts in an overall spending package for the remainder of FY2013 or through a more comprehensive agreement on government spending and taxes. The current Continuing Resolution expires on expires on March 27, three weeks after the sequester cuts take effect.